12 March 2019
Senior managers appointed by Population Services International (PSI), the Principal Recipient for the Global Fund’s malaria grant in the Democratic Republic of the Congo (DRC), manipulated the local tenders relating to PSI’s bed net mass distribution campaigns. These manipulations, which also extended to transportation contracts managed by local fiduciary agents hired by PSI, resulted in systemic and significant overpricing of transportation, warehousing, and customs clearances contracts, and an estimated financial loss of US$7,386,066 to the Global Fund.
Following the investigation, PSI has acknowledged this loss and has refunded the Global Fund in full. PSI’s inadequate internal governance and weak oversight of its DRC operations facilitated the wrongdoing. The Global Fund’s reliance on, and non-evaluation of, PSI’s internal controls reduced its ability to identify these procurement irregularities proactively. The Global Fund is reevaluating the assurance framework agreed with PSI to provide further clarity on the division of responsibilities between different assurance providers and to periodically evaluate the effectiveness of PSI’s internal controls.
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The Office of the Inspector General safeguards the assets, investments, reputation and sustainability of the Global Fund by ensuring that it takes the right action to defeat AIDS, tuberculosis and malaria. Through audits, investigations and consultancy work, it promotes good practice, reduces risk and reports fully and transparently on abuse.
Established in 2005, the Office of the Inspector General is an independent yet integral part of the Global Fund. It is accountable to the Board through its Audit and Ethics Committee and serves the interests of all Global Fund stakeholders. Its work conforms to the International Standards for the Professional Practice of Internal Auditing and the Uniform Guidelines for Investigations of the Conference of International Investigators.
The Global Fund believes that every dollar counts and has zero tolerance for fraud, corruption and waste. Through its whistle-blowing channels, the Office of the Inspector General encourages all to speak out to report fraud, abuse and human rights violations that prevent Global Fund resources from reaching those who need them.